India, China preferred bases for MNCs
Multinational firms are increasing the number of regional headquarters in the two Asian economic giants.india Updated: Nov 27, 2006 12:12 IST
Easy availability of talent pool, large market size and cheap labour continue to make India and China lucrative investment hubs for multinational firms, who are increasing the number of regional headquarters in the two Asian countries.
MNCs, which till now had their Asian headquarters based in Singapore and Hong Kong, are looking at Indian as well as Chinese cities for setting up their regional centres, Bank of America said.
"Over 100 MNCs have already set up their regional base in Shanghai," Bank of America Senior Vice President (GlobalTreasury Services) Richard P Linebaugh said, adding this trend was on an upswing and was being spelt out in India as well.
"We see great opportunities in both the markets, India and China, as they have similar local needs and size (in terms of treasury services)," Linebaugh said.
Besides basing their regional centres in India and China, multinationals are also increasingly setting up R&D facilities there, industry analysts said, adding this was because the two countries were cost effective and there was easy availability of talent pool.
Similar sentiments were echoed by Finance Minister P Chidambaram at the New Zealand Institute of International Affairs in Wellington recently.
He said that a large number of companies, which featured among the world's largest corporations, had established a research base in India.